Legal Question in Business Law in California

A year ago i got a costco member ship when i signed up i was told i needed to sign up for american express card to get a rebate. i was told that it would not be active till i activated it. today i get a bill from american express for almost a hundred dollars. i call to find out its for a renewal on a costco membership its a month over due. How can costco charge a card thats not active? was it legal for american express to authorize that with out the card being activated? should i have to pay?


Asked on 5/21/10, 8:55 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I think you should discuss this with the store and card issuer before inquiring about its legality. The store or card company may have done something improper, or not, depending upon what's in the fine print of membership documents you signed in the past, and the store or card company are the only ones well-positioned to explain and justify what they did, or to admit they made a mistake. Also, you may have a right to dispute charges on your card, and you should to that immediately as described in the card agreement.

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Answered on 5/25/10, 12:05 pm


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